ACIT, Jaipur V. M/S J.K. JEWELLERS INTERNATIONAL, Jaipur

ITA 582/JPR/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99500 (ITAT-JAIPUR)
• Duration Of Justice: 3 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 08-06-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA
• Assessee Lawyers: S L PODDAR DHK
• Keywords: Opportunity of being heard

Judgement Text

ITA NO.582/JP/2012 ACIT, CIRCLE- 7 JAIPUR VS. M/S. J.K. JEWELLERS INTERNA TIONAL 1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE:SHRI R.P.TOLANI, JM & SHRI VIKRAM SINGH YADA V, AM VK;DJ VIHY LA-@ ITA NO. 582/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 THE ACIT CIRCLE-7 JAIPUR CUKE VS. M/S. J.K. JEWELLERS INTERNATIONAL A-30, GOVINDI, TAKHTESHAHI ROAD JLN MARG, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAEFJ 9839 Q VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA, JCIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI S.L. PODDAR, ADVOCATE LQUOKBZ DH RKJH[K@ DATE OF HEARING : 20/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 20 /11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM:- THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER O F THE LD. CIT(A)- III, JAIPUR DATED 23-05-2012 FOR THE ASSESSMENT YEA R 2009-10. 2.1 THE APPEAL OF THE REVENUE RELATE TO UNVERIFIABL E PURCHASES. FOR THE SAKE OF CONVENIENCE, THE GROUNDS RAISED BY THE REVE NUE ARE AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS AND IN PERVERSITY, RESTRICTED THE ADDITION OF RS. 2,70, 19,135/- MADE ON ACCOUNT OF PURCHASE FROM DIFFERENT PARTIES , NONE OF WHICH WAS PRODUCED FOR EXAMINATION/ VERIFICATION BEFORE THE AO DESPITE REPEATED REQUEST S. ITA NO.582/JP/2012 ACIT, CIRCLE- 7 JAIPUR VS. M/S. J.K. JEWELLERS INTERNA TIONAL 2 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS AN D IN PERVERSITY HELD THAT THE GENUINENESS OF THE STAT ED PURCHASES HAD BEEN ESTABLISHED AND THAT THE RESTRIC TION OF DISALLOWANCE TO RS. 5 LACS WOULD SUFFICE EVEN WHEN GENUINENESS OF THE PURCHASES WAS NOT ESTABLISHED. 3. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS AN D IN PERVERSITY, HELD THAT THE ACCEPTANCE OF THE SALE S BY THE AO, JUSTIFIED THE PURCHASES, EVEN WHILE IGNORING TH E POSSIBILITY OF INFLATED PURCHASES. 2.2 AT THE OUTSET, THE LD. DR CONTENDS THAT COORDIN ATE BENCH OF ITAT IN BUNCH OF APPEALS BY ITS CONSOLIDATED ORDER IN THE C ASE OF ANUJ KUMAR VARSHNEY & OTHERS VS. ITO (ITA NO. 187/JP/2012 DATE D 20-10-2014) HAS HELD THAT 15% OF THE UNVERIFIABLE PURCHASES SHALL H ELD TO BE THE INCOME OF THE ASSESSEE FROM UNDISCLOSED SOURCES IN THE RELEVA NT YEAR. THEREFORE, THE APPEALS MAY BE DECIDED IN VIEW OF THE ITAT ORDER. A T THE SAME TIME, IT IS PLEADED THAT BOTH THE REVENUE AND ASSESSEE HAVE GON E IN APPEAL BEFORE HON'BLE RAJASTHAN HIGH COURT AGAINST THIS BUNCH O F ORDERS. 2.3 THE LD. AR OF THE ASSESSEE ALSO CONTENDS THAT T HE ISSUE IN QUESTION MAY BE SET ASIDE TO THE FILE OF THE AO TO DECIDE TH E SAME AFRESH AFTER THE JUDGEMENT RENDERED IN THE CASE OF SHRI ANUJ KUMAR V ARSHNEY AND OTHERS VS. ITO (SUPRA) BY HON'BLE RAJASTHAN HIGH COURT, AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD IN ACCORDANCE WITH LAW. 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND MERIT IN THE ARGUMENTS OF THE PARTIES. ITA NO.582/JP/2012 ACIT, CIRCLE- 7 JAIPUR VS. M/S. J.K. JEWELLERS INTERNA TIONAL 3 ACCORDINGLY, WE ARE INCLINED TO SET ASIDE THE ISSUE S RAISED BY THE REVENUE IN ITS APPEAL AND RESTORE THE MATTERS TO THE FILE OF A O TO DECIDE THE SAME AFRESH AFTER THE JUDGMENT OF HON'BLE RAJASTHAN HIGH COURT IN THE CASE OF ANUJ KUMAR VARSHNEY AND OTHERS VS. ITO (SUPRA) IS DELIVE RED, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE PARTIES. THUS THE APPEAL OF THE REVENUE RELATING TO UNVERIFIABLE PURCHASES IS ALLO WED FOR STATISTICAL PURPOSES. 3.0. IN THE RESULT, THE APPEAL OF THE REVENUE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20 /11/201 5. SD/- SD/- FOE FLAG ;KNO VKJ-IH-RKSYKUH (VIKRAM SINGH YADAV) (R.P.TOLANI) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 20 /11/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT , CIRCLE- 7, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S. J.K. JEWELLERS INTERNATIONAL JAIPUR 3. VK;DJ VK;QDRVIHY ) @ CIT(A) 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.582/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR